- Wanda Hotel Development Co Ltd (0169.HK) recently announced plans to acquire Wanda Cultural Travel Innovation Group Co Ltd from Wanda Cultural Industry Group for RMB 6.3 billion, as reported by Tencent Finance.
- In addition, Wanda Hotel Development plans to acquire Wanda Hotel Management (Hong Kong) Co Ltd from Dalian Wanda Commercial Properties Co Ltd for RMB 750 million.
- The company also announced plans to sell four subsidiaries, including Wanda’s real estate investment arms in North and South America and Australia, to Dalian Wanda Commercial Properties. The transaction amount has not been disclosed.
Why It Matters:
- The other parties in the three deals, namely, Wanda Cultural Industry Group and Dalian Wanda Commercial Properties, are both units under Dalian Wanda Group. Therefore, the deals can be explained as assets swaps between Wanda’s multiple subsidiaries.
- The four subsidiaries of Wanda Hotel Development planned to be sold to Dalian Wanda Commercial Properties each holds a controlling stake in real estate development projects in Guilin City, China, in London, in Chicago, U.S., and in Sydney and on the Gold Coast, Australia.
- This news came following Wanda’s recent moves earlier in August aimed at an internal organizational restructuring, in which Wanda Cultural Industry Group was launched. The news has also come after rumors that Wanda is seeking buyers for its Australian projects in Sydney and on the Gold Coast which have recently been denied by the company.